In our previous episode, we discussed Distributed Order Management or DOM software solutions. DOM is a relatively new and certainly not well understood type of software that is having a dramatic impact on supply chain execution, providing integrated fulfillment planning and execution across multi-echelon, multi-node, multi-partner, and multi-channel supply chain networks. We also discussed how DOM solutions differ from traditional order management systems. In great summary, traditional order management systems are order processing oriented, while DOM is more focused on order fulfillment.
At a high level, DOM solutions deliver:
• Real-time visibility to inventory and constraints across an extended network
• “Orchestration” of order fulfillment. This orchestration involves applying an automated set of dynamic rules to each order so that it is executed precisely according to the company’s desired business logic
• A rules engine foundation that executes configured business strategies based on order fulfillment policies
• Connectivity to other internal and external systems
• Automation of order handling processes
• Flexibility to fulfill orders based on that real-time visibility
To further clarify the power of DOM, this week we’ll discuss leading use cases. So here we go:
Number 1 – Enable and Optimize Omnichannel Retailing: That includes support for processes such as store fulfillment, Buy On-line, Pick-up in store, vendor drop shipping, and more without the need to modify existing systems.
Number 2 – Optimal Order Sourcing: Dynamically determining the lowest cost point for order fulfillment that meets customer service commitments while considering supply chain network capacities and constraints. This applies to both retail and B2B supply chains.
Number 3 - Enterprise “Order Hub”: DOM software is deployed on top of myriad existing order management systems to provide a single repository for all orders. The DOM system can route those orders to the appropriate OMS and provide visibility and rules-based decision making.
Number 4 - Manage Multi-Echelon Orders and Reverse Logistics: As is typical in the repair parts sector, DOM can identify the best souring point across master DCs, regional warehouses and local storage points or even the vans of technicians, considering many variables. It can also determine where unused or damaged part should be returned.
Number 5 – Managing Complex Order Requirements: Many companies have customers with unique and complex order requirements, involving inventory allocation, shipping, and other fulfillment attributes. DOM can serve as the repository to maintain and execute those customer-specific requirements, and rapidly on-board new customers. There are many other DOM use cases, but we’ve just reviewed the top applications. You can learn a lot more in our “Little Book of Distributed Order Management,” a very helpful guide. You can easily download your copy at www.Softeon.com.